Bank Lending Fell in April: Latest Treasury Report

Posted by: Theo Francis on June 15

The Treasury is out with its latest monthly bank-lending survey, looking at loans from the top 21 companies that sold shares to the government under the financial bailout. The results: Lending generally generally fell in April — the most recent data released — with a few bright spots.

The overview shows total originations fell by $21.8 billion, or 7.4%, since March, to $273 billion. Total average loan balances fell 0.8%, or $34.7 billion, to $4.3 trillion.

The picture is more mixed if you look from Jan. 1: Originations were up 11.8%, but total average loan balances are actually down 2%, or $89 billion, since the beginning of the year.

The Treasury chalked up much of the decline in consumer lending to borrowers paying down debt. Business lending were lower amid soft demand for a variety of commercial and industrial loans, including those for capital expenditures and acquisitions.

Check out Treasury’s analysis, bank-by-bank data, and the reports filed by individual banks.

Twenty-one banks doesn’t seem like a lot, but the Treasury notes that they account for more than half of net loans and leases at deposit-taking institutions.